Bitcoin prices continue to surge as the rally continues. Presently the price is around $22,500, but it did rally over $23,000, which was an all-time high. The huge surge in the prices of the cryptocurrency is because of increasing demand and the acceptance of the currency. BTC’s value surged drastically in just two days. It was trading at $19,500 on 16th December and crossed $23,000 by the end of the trading session of 17th December.
Massive demand and investment in Bitcoin
Mr. Vikram Subburaj, Co-Founder and CEO of Giottus Cryptocurrency Exchange said:
“This time BTC has not just revisited $20,000 but has gone ahead to rally beyond $22,000. We are noticing more and more BTC leaving exchanges across the world, 19% more transfer than the 2017 price increase, which is a signal that investors are holding BTC as long-term investments. UK-based ruffer investment, a recent example of investors looking to hedge their investment, had invested 2.7% of its AUM in Bitcoin this November. Even Insurance companies like MassMutual, the Massachusetts insurance firm with $235 Billion in AUM, dipped its toes into Bitcoin with a $100 million purchase. With more players joining the bandwagon we will be noticing more price increases in the days to come.”
After Bitcoin rallied a few years back, it fell back to around $3000 and wasn’t doing great for quite some time. Many even suspected that it might not even do that well again. But recently, Bitcoin prices show that it gained back the trust factor of investors. An asset manager of the UK said that out of his complete portfolio, 2.5% comprises of Bitcoin.
What’s different between the 2017 rally and now?
In 2017 Bitcoin prices rallied to $20,000 but also fell back very quickly. This was because the rally was completely based on retail speculation, and so the market didn’t take time to become bearish. But now, in 2020, the rally is different. It has less or almost no retail speculation and more because of investments. There are many investors, funds, and retailers, too who are praising and investing in the digital commodity.
There are many who weren’t much in favor of the currency, but now they too have been praising it. Big companies like PayPal and Fidelity that you have obviously heard of are also investing in Bitcoin. There are reports saying that many big investors are pulling cash to invest in Bitcoins like never before.
Some investors are even giving long term goals for Bitcoin prices. The Chief Investment Officer of Guggenheim Investments, Scott Minerd, gave a target of $400,000 of Bitcoin. But yes, don’t make your investment decision just based on this speculation, because there are a lot of other factors to be kept in mind. While some are praising the currency Warren Buffest thinks that trading bitcoin is more like gambling than actual trading. This is because it doesn’t actually have intrinsic values.Bitcoin prices have reached $20,000. From a ban to a boom, India’s cryptocurrency industry is not only out of the woods, but is witnessing a bull run.
Bitcoins are here to stay and maybe someday actually reach as high as $400,000. Have you invested in the digital currency and made some money? Let us know in the comments below. And if you found our content useful and informative do like and share it with your friends.